> An interesting perspective.
> 
> In what sense, would such a state be "stable" though?
> -raghu.

Stability, in capitalist terms, is constituted by the pacification of the
working class. Other forms of 'instability' harm only individuals -- mostly
workers but also _individual_ capitalists. But disaster for individual
capitalists (or groups of capitalists) does not  constitute any threat to
capitalist relations of production. Only a mass movement of workers (such as
the '60s offered a premonition of) can endanger capitalism. Mass misery (or
mass precariousness) serves ordinarily to "individualize" (fragment)
workers, thereby contributing to capitalist stability. The strengthening of
repressive machinery, begun under the Johnson & Nixon administrations (wars
on crime & drugs) and intensified by every administration since then, can
handle marginal surges of resistance.

Austerity is stable (stagnant) as former capitalist regimes were not. The
result of this "permanent" or endless 'crisis' is the transformation of the
"proletariat" into the "Precariat," its powers of resistance suppressed, as
Marx saw it could happen. See Chapter 14 of Wages, Price and Profit. Here is
the key paragraph:

"These few hints will suffice to show that the very development of modern
industry must progressively turn the scale in favour of the capitalist
against the working man, and that consequently the general tendency of
capitalistic production is not to raise, but to sink the average standard of
wages, or to push the value of labour more or less to its minimum limit.
Such being the tendency of things in this system, is this saying that the
working class ought to renounce their resistance against the encroachments
of capital, and abandon their attempts at making the best of the occasional
chances for their temporary improvement? If they did, they would be degraded
to one level mass of broken wretches past salvation. I think I have shown
that their struggles for the standard of wages are incidents inseparable
from the whole wages system, that in 99 cases out of 100 their efforts at
raising wages are only efforts at maintaining the given value of labour, and
that the necessity of debating their price with the capitalist is inherent
to their condition of having to sell themselves as commodities. By cowardly
giving way in their everyday conflict with capital, they would certainly
disqualify themselves for the initiating of any larger movement."

Carrol


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